India to document revenue loss due to NTBs in Bimstec trade
Financial Express, India
India to document revenue loss due to NTBs in Bimstec trade
Arun S
25 September 2006
NEW DELHI, SEPT 24: Concerned over the possibility of non-tariff barriers (NTBs) of Bimstec nations becoming an obstacle to the projected 74% jump in India’s exports to them from 2003 figures, the government will soon collect data regarding the current and future revenue loss incurred due to the NTBs. It will also find out if the NTBs of Bimstec nations are forcing exporters to circumvent the law and cause revenue loss to India.
The members of Bimstec include Bangladesh, Bhutan, India, Myanmar, Sri Lanka, Thailand and Nepal.
The NTBs include procedural requirements, sanitary standards, certification and technical standards. The commerce ministry has asked all stakeholders in India’s trade with Bimstec, if these NTBs were impediments and should be removed.
In a questionnaire released last week, the ministry also sought suggestions to reduce the cost of complying with Bimstec NTBs. The ministry said studies showed a 74% increase in India’s exports to Bimstec was possible if rapid tariff liberalisation was carried out and if NTBs were eased.
Despite high tariff barriers and NTBs, India’s intra-regional trade with Bimstec countries went up from 4.12% in 2001 to 6.61% in 2003. Exports from India to Bimstec include vegetables, animal fodder, engineering goods, petroleum, natural gas, iron, steel, vehicles, cement, aluminium, insecticides and rough diamonds.
India is in talks with Bimstec to ink a free trade agreement.
“NTBs can be sorted out by a pact to harmonise testing standards. We have one such pact with Sri Lanka by which exporters can get their products tested in mutually accredited labs in their own country. This makes the procedure cheaper and less time-consuming,” said Nagesh Kumar, director general of research and information system for developing countries.
TS Vishwanath, head, International Trade Policy, CII, said, “Exporters feel NTBs are the biggest obstacles. An agreement to harmonise testing standards cannot be inked without transparency in sanitary and phyto-sanitaty standards and in norms of technical barriers to trade.”
